South Africa is a resource-rich country with significant coal, iron ore and diamond reserves, and the world's largest reserves of platinum. The country has a long, well-established history of mining and overall, the industry employs nearly half a million people.

But the country faces significant social and economic challenges. One in four people are unemployed and nearly three quarters of those people who don't have jobs are under the age of 35.

More than 95% of Anglo American's mining operations are in the developing world so we see this challenge in many of our host countries and communities, explains Jon Samuel, Head of Social Performance at Anglo American.

"We work closely with our host communities around the world to understand their challenges and their aspirations, and to identify ways that we can share the benefits of mining with them to improve their lives.

Although there are local differences, we tend to see some common issues coming up time and again, for example, the desire for new jobs – and not necessarily in the mining sector."

Creating jobs outside of mining, by supporting small and medium sized businesses, is an integral part of our social and economic development work with communities.

Operating since 1989, Anglo American's Zimele initiative has been recognised internationally by the United Nations and the International Finance Corporate, among others, for its successful approach to creating jobs and supporting small businesses outside the traditional mining footprint.

Meaning 'to be independent' or 'to stand on one's own feet' in the African languages of Zulu and Xhosa, Zimele provides equity or loans, and mentoring, to black entrepreneurs who want to set up and run their own business.

Samuel says: "We've built up our experience in this area in all our host countries over many years, but the essence of our approach really came from South Africa, from Zimele."

And it has been successful. Since 2008, Zimele has provided more than $75 million to businesses that employed more than 21,000 people in South Africa and that had a combined turnover of $295 million. These figures represent the time frame 2008 to April 2012.

Zimele has five separate funds that support different types of entrepreneurs from emerging black-owned mining companies to young people; women and those South Africans that have been historically disadvantaged. The businesses are many and varied from driving schools to eyecare specialists, to sweet shops.

The latest fund, The Green Fund, was launched in November 2011 to support small businesses in the green economy, whether that means mitigating greenhouse gas emissions, reducing energy and water consumption, or improving waste and emissions management.

Nick van Rensburg, Head of Zimele, is quick to note that Zimele is not a hand out, but a hand up for people who have struggled to secure funding through traditional means. It is run on a commercial basis and its repayment rates are significantly higher than most schemes of this kind with a repayment rate of 90% and a return on equity of around 7%.

"One of the key things we've learnt over the years is that you need to have a hands-on approach that is flexible and adjustable to particular circumstances and situations. It's not a 'one size fits all' approach. Both Zimele and the business owners have an equity stake in the business so the risks and successes are shared.

"It also relies on an extensive support network, as well as people with a passion for innovation, development and transformation," van Rensburg says.

The success of the Zimele model hasn't just led to job creation in South Africa. Anglo American has used this model as the inspiration for enterprise development programmes in other countries. In Chile, the Emerge programme helps small and medium sized businesses by providing training and community bank micro-loans. Working together with Fondo Esperanza, we've helped 100 medium-sized businesses and more than 25,000 small businesses.

A unique project in South Africa is turning dirty water into clean water, while creating jobs and new homes. It shows that business needs and community aspirations do not have to be mutually exclusiveSponsor's feature

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